Bhubaneswar, Jul 7: In a move aimed at bringing greater transparency to the procurement of construction materials and preventing arbitrary pricing, the Odisha government issued a new Standard Operating Procedure (SOP) for fixing cement and steel prices for development works executed under the Panchayati Raj and Drinking Water Department.

The new mechanism empowers district-level committees, headed by the respective District Collectors, to finalise the prices of cement and steel every three months. Officials expect the system to ensure uniform pricing, reduce delays in project execution and streamline procurement across rural development projects.

The Panchayati Raj and Drinking Water Department has issued detailed guidelines to all District Collectors, who also serve as District Programme Coordinators (DPCs), and Chief Development Officers-cum-Executive Officers (CDO-cum-EOs) of Zilla Parishads.

Transparent Pricing Mechanism
According to the SOP, each district will constitute a committee chaired by the Collector. The committee will include the CDO-cum-EO as member-convener, along with the Additional Executive Officer (Technical) of the Zilla Parishad, a Superintending or Executive Engineer from the Roads and Buildings or Rural Development Department, two Block Development Officers (BDOs), and two Assistant Executive Engineers.

The committee will determine district-wise cement and steel prices once every quarter and upload the approved rates for implementation.

The decision comes after the government observed delays in updating prices on SECURESoft and the Project Performance Monitoring System (PPMS) due to dependence on quarterly price data from the Works Department. The delay often affected estimates, procurement and execution of rural infrastructure projects.

How Cement and Steel Prices Will Be Fixed?
Under the revised guidelines, district authorities will collect quotations directly from cement manufacturers operating in Odisha. The final cement price will be based on the average factory price quoted by at least three companies.

For steel procurement, preference will be given to prices quoted by the Steel Authority of India Limited (SAIL). If SAIL products are unavailable, prices of other companies approved by the Works Department may be considered.

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Focus on Quality Control
Apart from pricing, the SOP also lays down strict quality norms.

Only steel conforming to Bureau of Indian Standards (BIS) specifications will be permitted for government projects. Independent quality testing may be carried out wherever necessary, while procurement must be made only from reputed integrated steel manufacturers.

The government has also made district-level committees fully accountable for any discrepancies in price determination.

Mandatory Quarterly Uploads
The approved prices, minutes of committee meetings, quotations received and calculation sheets must be uploaded on SECURESoft and PPMS and submitted to the department by the first day of April, July, October and January every year.

With the implementation of the new SOP, all previous government instructions relating to cement and steel price fixation stand withdrawn.

Officials believe the revised framework will bring greater transparency, ensure timely updating of material prices and minimise disruptions to ongoing rural infrastructure and development projects across Odisha.